Answer:
b. countries can become better off by specializing in what they do best.
Explanation:
Comparative advantage in economics is the ability of an individual or country to produce a specific good or service at a lower opportunity cost better than another individual or country.
The comparative advantage gives a country a stronger sales margin than their competitors as they are able to sell their specific products or render their peculiar services at a lower opportunity cost.
In 1817, David Ricardo who is an english political economist talked about the law of comparative advantage in his book “On the Principles of Political Economy and Taxation."
Also, the principle of comparative advantage asserts that countries can become better off by specializing in what they do best.
This simply means that, any country applying the principle of comparative advantage, would enjoy an increase in output and consequently, a boost in their Gross Domestic Products (GDP).
Answer:
Firm should operate.
Explanation:
Here, we are assuming that this is a situation of short run.
A firm will operate or shut down is totally dependent upon whether the firm will be able to cover its variable cost of not. If a firm will be able to cover all of its variable cost then this firm will not shut down and operates in the short run until it covers all of its variable costs.
In this case, given that,
Total revenue = $1,000
Total cost = $1,500
Variable cost = $500
Profits = Total revenue - Total cost
= $1,000 - $1,500
= -$500
Therefore, this clearly shows that this firm will be able to cover its variable cost of $500 with the total revenue of $1,000. That's why the firm remains in the market even there is a loss of $500.
Hence, this firm should operate.
Marginal analysis is really important for a firm. Marginal analysis helps a firm to determine the most equitable allocation of a firm’s resources.
EXPLANATION:
Marginal analysis is an assessment of additional benefits of a firm activity, compared to the additional costs which are incurred by the exact same firm’s activity. A firm or company applied marginal analysis to make a decision which helps a firm to maximize the potential profits and benefits. The example of marginal analysis is when the firm’s cost to produce one more appliance or the profit gained by adding one more worker.
In microeconomics, marginal analysis is applied to analyze how a compound system being influenced by marginal manipulation of its comprising variables. On this occasion, the marginal analysis focuses on investigating the results of small changes as the consequences cascade across the business as a whole. The goal of marginal analysis is to investigate whether the costs associated with the change in activity will affect in a benefit which is sufficient enough to offset a firm. The whole impact of marginal analysis is on the cost of producing an individual unit which is most often observed as a comparison’s point.
LEARN MORE:
If you’re interested in learning more about this topic, we recommend you to also take a look at the following questions:
1. Marginal analysis helps to? brainly.com/question/3318349
2. A command economy tends to exist under a brainly.com/question/10877298
KEYWORDS: marginal analysis, economy analysis
Subject: Business
Class: 10-12
Sub-chapter: Marginal Analysis